3 A B C D E F G H I J K L M N O P Q R S T U V W Y

Inventory days of supply

Inventory days of supply measures the average amount of inventory on hand, expressed as how long it would take to use it all. The assumption is no more inventory comes in, and production usage will be average.

The volatility of supply and demand determine what is required. Companies with stable demand and reliable suppliers can operate with very low inventory days of supply.